Global Investor Engagement on Meat Sourcing
The fast food sector plays a dominant role in feeding our global population – on any given day around 84.8 million adults in the US, nearly one third of the population, consume fast food. This sector continues to expand rapidly across developed and emerging markets. A significant portion of this consumption is linked to food items that wholly or partially involve meat and/or dairy products.
Across three key areas – greenhouse gas emissions, water and land use – animal proteins have a significant environmental footprint. This increasingly creates material reputational, operational and market risks for the companies buying animal protein-based products. Agriculture and land use constitute 24% of global GHG emissions, and meat and dairy supply chains are major contributors and are also among the biggest drivers of tropical deforestation. Their productivity will also be impacted by rising temperatures.
For fast food companies buying meat and dairy, these supply chain risks present growing challenges to their supply security, sustainability ambitions, brand and reputation, and financial growth. As investors, we are asking six companies to set, and report on, a clear strategy for how they are de-risking their meat and dairy supply chains. The development of strong supplier policies, commitments to science-based targets, and undertaking a climate risk scenario analysis are all advisable.
What can you expect from Ceres and FAIRR?
Ceres and FAIRR will coordinate the customization of letter to the companies as well as support dialogue with any companies that respond to the letter. Additionally, Ceres and FAIRR have put together a guidance document on the elements of the ask that will be sent along with the letters. Investors who sign on to this letter are not obligated to participate in dialogues but will have the opportunity to engage with the companies if they choose to.
To join the engagement, please contact:
Investor Engagement Manager, FAIRR Initiative